ValleyWatch

October 10, 2020 – by John Blair, valleywatch.net editor

This night picture of the experimental plant built in China shows it as part of a much larger petroleum refinery complex. Because of its proximity to the conventional refinery, it is likely that instead of coal, it uses petroleum coke, a refining waste as feedstock. In any case, such a plant, lit up to feign daylight on the ground will permanently alter the bucolic life of those who currently live in Dale. Photo credit:Unknown. 

Valley Watch and Southwest Indiana Citizens For Quality of Life (NOC2D) have remained active during 2020 in our efforts to keep the ridiculous proposal for a Coal to Diesel plant from being constructed in Dale. Of course, the Covid Pandemic has slowed life as usual but our efforts remain strong and we predict success in stopping the plant in the end.

Surely, you remember in 2017 when Riverview Energy made its original pitch to County leaders and the word on the Street was, “This is a done deal!” And although many of the details surrounding the plant were (and still are) kept secret, our groups have collectively managed to analyze the economics, emissions and overall viability of building and operating such a costly and polluting plant in the bucolic town of Dale. Dale’s Town Board bought into the plant with stars in their eyes over the promised tax revenue a $2.5 billion plant would bring. 

But here is the thing. This plant will only be built by defying all the odds. 

First, is its stated cost. Did you know that Riverview is still using the same cost figures they used when they went to Vermillion County in 2010. In depositions, Riverview said the proposal in Spencer is identical to the one first proposed for Vermillion. And it should be noted that after nearly seven years there, Vermillion County officials tired of Riverview’s empty promises and politely told them to go elsewhere. Do Riverview’s financial experts claim there has been zero inflation since 2010?

Second, Riverview has claimed that financing for the project is just around the corner but have shown no evidence that their project will meet even the most liberal criteria for what will ultimately be closer to $4 billion. We do know that it DOES NOT qualify for current loan guarantees from the Federal Government since they refuse to capture and properly dispose of the enormous carbon dioxide emissions they will create.

Third, Riverview is a “start-up” company. They are not an established Exxon, Apple or Amazon that can finance such a large project out of pocket. In fact, their owner and President, Mr. Merle admitted in sworn testimony that he had zero experience in the manufacturing, construction, or operating anything, let alone what could turn out to be the third largest project ever undertaken in Indiana. Indeed, his previous experience was tutoring rich kids to take the SAT test-a business which I might add failed.

Fourth, there are only two of these facilities built in the entire world. One is in communist China and one in Russia, both of which are dictatorships with very limited environmental regulation. Of course, Merle also says he has been to neither but expects his money people to accept that as good business practice. USA environmental rules will significantly add to the cost of such a facility but Riverview does not seem to understand that fact or perhaps their plan is to simply ignore even the loose conditions of their construction permit which our groups have challenged, so far winning on at least one count where IDEM ignored their own public participation rules to issue.

Fifth, we are now living in a carbon constrained world. The international coal industry is on its last leg and the transportation fleet, including shipping are seeking alternatives to diesel fuel and naphtha

This list of reasons is almost endless but consider this. Riverview has a ten year history of promising things they simply can’t or won’t deliver. And, although they have had the support of County and economic development officials in Spencer County, nothing changes the fact that no one in their right mind is going to loan someone with zero experience, billions of dollars to build something that may have made sense in the early 20th Century but is nothing but a failed technology for a carbon conscious society in 2020.

Thus, I ask, when are Spencer County and Dale leaders going to follow the action of those in Vermillion County and tell Riverview that they are tired of continual division in their community and that it is time for him to put up or shut up. Riverview claims to control the land they have chosen and they have already had almost seventeen months since acquiring permission to begin construction but have actually done NOTHING to make that happen.

Officials need to ask what is the status of their land options? What is the status of the Front End Engineering and Design? What is the factual status of Riverview’s financing and who is providing that? Where is Riverview going to get their process water and who is paying for the infrastructure to get it to the site? Where is Riverview going to dispose of both its solid and liquid waste and what will that consist of? What kind of Federal, State and County taxpayer subsidies is Riverview asking Hoosiers to make?

If Riverview refuses or does not want to publicly disclose the answers to these and other pertinent questions, then everyone in Spencer County should tell them to hit the road and allow the whole community to reunite to achieve the progress they so rightly deserve.

Spencer County already has the dubious distinction of being one of the most toxic polluted communities on earth, ranking in the top 25 in the US while sporting a population around 20,000. Illustration credit BlairPhotoEVV

July 7, 2020 – by John Blair. valleywatch.net editor

Prior to proposing a multi billion dollar Coal to Diesel refinery in Dale, Merle’s only job was tutoring high schoolers on the SAT test.

Of course anyone can file a complaint in court against anyone. But I find it interesting that recently a complaint was filed alleging fraud on the part of Riverview Energy and its President, Gregory Merle in the Southern District of New York. This is the man and company that some Spencer County officials and many in State government yearn to locate a preposterous Coal To Diesel plant in Dale. Read for yourself.  SDNY Complaint

March 24, 2020 – By John Blair, valleywatch.net editor

It’s been nearly two years since then head of LincolnLand Economic Development Corp., Tom Utter promised citizens of Dale that Riverview Energy would conduct an “open forum” where residents could ask questions of plant sponsors. Now, twenty-three months later, neither LEDC nor Riverview has conducted any such forum even though repeated requests for such a session have been made by the public.

Tom Utter, Former Executive Director of LincolnLand Economic Development Corp. has been the number one cheerleader for the development of the Riverview coal refinery since 2017 when Riverview was kicked out of Vermillion County after six years of broken promises. Photo: © 2018 BlairPhotoEVV

In the meantime, the Indiana Department of Environmental Management (IDEM) has issued a construction permit for the massive refinery which will permanently light up the night sky for miles around, forever altering life as we know it in Dale. It should be noted that already the judge hearing the appeal filed by Valley Watch and SW Indiana Citizens For Quality of Life found that IDEM issued a permit to pollute without following Indiana rules for public participation. IDEM refused to share information with citizens about the refinery prior to the hearing held December 5, 2018, even though the groups had filed formal “Public Records Requests” for that information as early as June 2018.

So, we have a corporation, Riverview, which desires to operate in secrecy being backed by a government, IDEM, that wants things opaque and out of the hands of the citizens who will be most impacted by a totally experimental venture. 

It should also be noted there are only two of these experiments operating anywhere in the World. One in China and one is Russia. Neither of those plants have any public records of emissions and according to the IDEM permit reviewer, were not even in operation when the permit was issued. It is also probable that neither of those refineries even uses coal as a feedstock so even if emissions data was available, which it is not, that data would not be reflective of using coal as a feedstock.

This night picture of the experimental plant built in China shows it as part of a much larger petroleum refinery complex. Because of its proximity to the conventional refinery, it is likely that instead of coal, it uses petroleum coke, a refining waste as feedstock. Photo credit: News China

It’s not only emissions, including known cancer-causing chemicals, that concern locals because there are serious safety issues that also need to be addressed before the first spade of earth is turned to construct the plant.

Among those safety questions is how will emergencies at the refinery be handled and by whom. We know that the sponsors claim they will produce 105,000,000 gallons of naphtha annually. FYI, naphtha is the primary ingredient used in cigarette “lighter fluid,” a chemical that can easily ignite with a single spark. 

Consider this. A single day’s production of naphtha at the refinery will equal almost 287,671 gallons. Every drop of that is highly explosive and if a single day’s production was all that would ever be on the site, please imagine the fireball that would rise from Dale if it were to ignite either accidentally or as an act of terror. Such an explosion would rattle windows as far away as Jasper and level the Town of Dale.

Add to that, the resulting fire from the slower burning daily output of diesel fuel-552,328 gallons, a fire might burn for days, even weeks polluting local streams with run-off and filling the air we breathe with noxious fumes jeopardizing everyone downwind.

As good as it currently is, the Carter Township Fire Department, would not be able to fight such a disaster. To do so would require the assistance of first responders from maybe 100 miles around, leaving those communities vulnerable to reduced protection.

You might say, “But, John, you paint the worst-case scenario for a disaster.” You would be right. But consider this. The President of the Riverview has zero experience in building and operating a giant multi-billion dollar experimental refinery. In fact, prior to his appointment as President of Riverview, his only professional experience was tutoring high school students for their SAT tests to gain college entrance. That seems unqualified to me.

To recap: Riverview has a novice managing construction and operation of a plant that will be handling some of the most explosive material on the planet. They have chosen secrecy about nearly every facet of their proposal, including actual emissions, financing, and other questions of significance. Further, the regulatory body that is supposed to protect us, issued a permit without answering legitimate and legal questions further increasing secrecy of the permitting process. This plant will be a giant public safety risk handling enormous quantities of combustible material but citizens are left in the dark as to how those risks will be mitigated.

BOTTOM LINE: Spencer and Dubois residents are expected to shut up and go along with something that will permanently alter their lives and present huge risks to their health both near and long term. Why? So a man from Connecticut who has zero experience can seek to make a fortune from an experiment likely to require taxpayer assistance. Are you willing to take that risk?

September 19, 2019 – by John Blair, valleywatch.net editor

Issues with my personal mobility have kept me from posting nature pix from the Valley Watch garden the last couple of years. But something did catch my eye today and I thought I would share it. A glistening blue wasp was working the early blooms of Golden Rod that are bursting forth this week.

July 30, 2019 – by John Blair, valleywatch.net editor

Clifty Creek, built in the middle 1950s may continue operating until 2040 after Ohio legislature gives them giant subsidy.

Madison, Indiana is a beautiful town. It even had a large production movie made about its community spirit last decade entitled “Madison.” And, its home to a wonderful State Park-Clifty Falls. Unfortunately, it succumbed to the lure of jobs in the 1950s and became home to the nefarious Clifty Creek power plant.

Clifty Creek and its “sister” plant in Ohio called Kyger Creek were built with a single purpose in mind-to supply electricity to the now shuttered Portsmouth, OH uranium enrichment plant that was closed shortly after the turn of the Century. But both continued to operate as a “merchant plants” since.

Madison’s riverfront is really cool, except when you try to watch a sunset which is always obscured by the massive plant whether it’s operating or not as it dominates every effort to look west.

Owned by a consortium of Indiana , Kentucky and Ohio utilities, including 44% by AEP, the plant has made major investments in pollution controls around fifteen years ago. (See data in picture above). As a result, numerous efforts by a group of environmentalists, including Valley Watch, CAC, Save the Valley and Hoosier Environmental Council have failed to secure retirement for the ancient plants.

Now, Ohio ratepayers are going to be further enslaved to pay for the uneconomic operation of both Clifty and Kyger Creek plants just to highly subsidize their utility owners, none of which consider those plants in their actual rate bases.

Ohio’s legislation also bailed out some failing nuclear plants owned by First Energy in what has become the worst “socialization of risk-privatization of profit” scheme devised for plants that are not only failing financially but also constitute heavily to disease in all health for those downwind.

Fortunately, a bill that would have prevented Indiana utilities from building new plants to replace aging coal plants failed in the Indiana legislature this year even after the coal industry hired disgraced former EPA Administrator, Scott Pruitt to lobby the bill.

The coal-to-diesel plant would emit millions of tons of dangerous pollution using a technology that has never been employed in the U.S.

July 11, 2019 – Press Release from Earthjustice

Community groups appealed an air quality permit issued to Riverview Energy Corporation for its proposed construction of a massive coal-to-diesel refinery in Dale, Spencer County, Indiana.  Earthjustice worked with Southwestern Indiana Citizens for Quality of Life and ValleyWatch.  The proposed refinery, which would be the first of its kind ever built in the United States, would emit dangerous air pollution in a county that already ranks among the worst one percent nationally for toxic releases.  

The community groups’ appeal describes how the permit is rife with errors that provide no reassurance to the public that they would be protected from the refinery’s dangerous pollution. The Indiana Department of Environmental Management issued the permit on June 11, 2019.

“This permit is deeply flawed,” said Charles McPhedran an attorney with Earthjustice. “Riverview Energy must not be allowed to site this dangerous project near vulnerable communities, including an elementary school and nursing home.” 

“Riverview Energy’s coal-to-diesel refinery is in close proximity to residential homes,” said Mary Hess, President of Southwestern Indiana Citizens for Quality of Life. “This refinery would be adding to several facilities already in our community emitting toxic air pollution. We won’t let our neighborhoods become a sacrifice zone for public health.” 

“We have been down this path several times before,” said John Blair, President of ValleyWatch.  “None of the prior projects even broke ground due to the horrible economics of coal conversion projects. In the end, Riverview Energy will be little more than a failed ‘get rich quick scheme’ for the sponsors.”

Background: The proposed refinery would use “Veba Combi Cracker” technology, which has never been used before in the United States and is licensed by KBR (the former Halliburton subsidiary), to transform coal into liquid fuels like diesel and naphtha through the process of “hydro-cracking.” This process would require crushing more than two million tons of coal every year and mixing it with toxic additives and heavy gas oil. If built, the refinery would emit massive amounts of hazardous air pollution every year, including known carcinogens like benzene and polycyclic aromatic hydrocarbons, in addition to significant amounts of particulate matter and other pollutants that contribute to asthma. The refinery also would emit more than two million tons of greenhouse gases every year.

Read the appeal.

April 30, 2019 –  by Pam Wright in Weather.com

Wind farms like this one in White County, IN have earned a significant role in electrical generation over the last ten years. Iowa and Texas are big developers of wind generation. Photo © BlairPhotoEVV

• Clean energy is projected to surpass coal this month for the first time ever. 
• In 2010, 45 percent of total power generation came from coal.
• By 2018, that percentage tumbled to just 27 percent and the trend is expected to continue, analysts say. 

The consumption of renewable energy is projected to generate more electricity than coal this month for the first time ever, suggesting the United States is reaching a tipping point for clean energy sources, a recent report from by the Institute for Energy Economics and Financial Analysis (IEEFA) says.

Data published this month by the Energy Information Administration (EIA) Short-Term Energy Outlook estimates renewable energy will generate 2,322 and 2,271 thousand megawatt hours per day in April and May, respectfully. This compares with coal’s expected 1,997 and 2,239 thousand megawatt hours per day for the same two months. 

The IEEFA report notes that seasonal considerations like a higher demand for hydro power in spring and coal plants being taken offline during low demand periods contribute to these figures.

This isn’t the first time that coal has been passed by a competitor. 

Natural gas surpassed coal for the first time in 2015 as the largest producer of electricity, again primarily as a result of seasonal considerations, the report noted. 

Since then, the consumption of natural gas has continued to grow. 

In 2015, coal and natural gas each accounted for 33 percent of the electricity market. By 2018, a gap began to widen with natural gas’s share rising to 35 percent while coal’s dropped to 27 percent. The gap is projected to widen even further in the coming years. 

Now, wind and solar are joining natural gas in pressuring the struggling coal sector, which has seen a 39-year low in consumption this year. 

Part of the problem is the maintenance of coal power plants, which is very expensive and drives up power costs. To combat rising costs for both the companies and their consumers, many companies are investing in clean sources like solar and wind as they become cheaper. 

(MORE: For 300 Days, Costa Rica Generated Electricity from Renewable Sources Alone)

Coal’s decline has been rapid. In 2010, 45 percent of total power generation came from coal. By 2018, that percentage tumbled to just 27 percent. Projections say coal will continue to drop to an estimated 24 percent by 2020.

“Five years ago this never would have been close to happening,” Dennis Wamstead, research analyst at IEEFA, told CNN Business. “The transition that’s going on in the electric sector in the United States has been phenomenal.”

It could take some time before renewable energy permanently surpasses coal on an annual basis. It wasn’t until 2016 that natural gas surpassed coal for good, becoming the United State’s No. 1 power source.